Versace set to acquired by Michael Kors very soon

Donatella Versace has called a meeting with employees on Tuesday to announce the sale

MILAN, Italy - The iconic Italian fashion house, Versace is reportedly set to be acquired by U.S. fashion group Michael Kors in a deal believed to be worth $2 billion.

Founded by Gianni Versace 40 years back, the Milan-based group is being run by Donatella Versace and her brother Santo Versace since the murder of their sibling Gianni in 1997.

While neither of the companies have revealed any details of the possible deal, Donatella Versace - who currently doubles as artistic director and vice-president of the group - has reportedly called a meeting with employees on Tuesday to announce the sale.

According to sources quoted in a report in the daily newspaper Corriere della Sera, the sale of the Italian fashion house Versace could be announced "within hours."

The report further noted that the deal could be valued at $2 billion and pointed out that rumors are rife that Michael Kors or jeweler Tiffany & Co could buy the Italian brand, known for its Medusa head logo.

In 2014, after U.S. private equity group Blackstone bought a 20 percent stake in the Milan-based group in a bid to fund overseas expansion, Versace has been considering a listing.

The remaining part of the company is currently owned by the Versace family.

Meanwhile, later on Monday, sources confirmed that the U.S. handbag maker, Michael Kors is nearing an agreement to buy the Italian fashion house known for its baroque designs.